When can a loan in FAS 114 be moved back to FAS 5 status?
A loan can be moved back to FAS 5 status at any point that the loan has sufficient performance to no longer be deemed impaired. For example, in contrast to a TDR which once a TDR always a TDR, we may have a non-accrual loan that has performed as agreed, that has 6 months of performance on its payments and, consequently, can be brought off its non-accrual status. Once it is brought off the non-accrual status, that loan can then be deemed as performing and can be moved back within the appropriate homogenous pools within the FAS 5 pools.
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